Binance Allocates $6.34B to Cover Record $6.3B Hack Losses

Binance confirmed it suffered a $6.3 billion cryptocurrency hack, the largest in crypto history. The company stated it has set aside more than $6.34 billion to cover all losses. A Binance spokesperson noted that $5 billion of this amount is already held in the same tokens that were stolen. These assets are currently in Binance custody. The company pledged to cover all losses from the incident.

Binance linked the theft to a DevOps engineer's compromised laptop. Blockaid stated that compromised signing systems likely enabled the hack. Security experts noted that attackers could have drained Binance's wallets without Ethereum Improvement Proposal 7702. However, they suggested the upgrade may have helped bypass withdrawal safeguards. Ido Ben-Natan of Blockaid stated that attackers could have stolen the funds without EIP-7702. Ethereum introduced EIP-7702 in May 2025 as part of its Pectra upgrade.

Chainalysis assessed the total stolen amount at $6.4 billion. Funds began leaving Binance hot wallets across multiple blockchains around 4:20 p.m. Eastern Time on October 29. The attacker reportedly tried to outpace freezes by converting stablecoins into ether and other assets that issuers cannot freeze. TRM Labs and Chainalysis have attributed the attack to North Korea-linked hacking group TraderTraitor. Industry partners have frozen another $3 billion in affected assets.

Geoffrey Kendrick stated that investors should wait until after the impact of the Binance attack plays out in the markets before re-engaging with Uniswap. CoinGecko research shows the top 10 spot DEX-to-CEX ratio was 23.5% in the second quarter of 2026. Binance co-CEO Yi He said the company's annual revenue is sufficient to cover the losses without selling its SpaceX holdings. Binance said it provides weekly reports on its company funds to the Financial Services Regulatory Authority (FSRA).